RailTel IPO: In chat with Anil Singhvi, CMD Puneet Chawla reveals public issue details, expansion plans and more

RailTel IPO: RailTel is coming up with its public issue and the date on which it will open has been fixed at 16 February, 2021. In this three-day Initial Public Offering (IPO), the issue price of which is Rs 93-Rs 94 per share, shares worth Rs 819 cr will be sold. In this Exclusive chat with Zee Business Managing Editor Anil Singhvi, RailTel Chairman and Managing Director (CMD) Puneet Chawla said that the focus of the company will be on expanding network and data centre. (#NewsParViews). 

RailTel is a government-owned information and communications technology infrastructure provider and provides broadband telecom and multimedia network across the country. 

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RailTell IPO lot size is at Rs 155 and the minimum investment required is R 14,570 and the government will be selling its 27 per cent stake in the company.       

The CMD said that RailTel has a pan India optical fibre network and is also present in the rural parts of the country. The company also has two data centres. The company is offering a diverse range of services which includes telecom services, infrastructure services, data centre services and project execution services, he added. 

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16 से 18 फरवरी तक खुलेगा रेल-टेल का IPO... #NewsParViews में कंपनी के CMD पुनीत चावला ने कहा- नेटवर्क और डाटा सेंटर को बढ़ाने पर है कंपनी का फोकस#RailTel #IPO @AnilSinghvi_ @RailTel pic.twitter.com/BzwHZrHzbY

— Zee Business (@ZeeBusiness) February 12, 2021

RailTell was formed primarily to cater services to the Indian Railways but has now been giving services to government departments and PSUs. 

RailTell Policy on Dividends: 

RailTel gives the government dividend equal to 5 per cent of its net worth or 30 per cent of its net profit, whichever is higher. Last year, the company has aid Rs 68 cr. 

On Business Plans: 

The company has been increasing its network and data centres. As per the draft data protection policy of the government, the companies operating in India are required to store data locally. In view of this, RailTel must do expansion in its telecom infrastructure and its data centres. It has already earmarked the capital expenditure, the CMD said. The provisions of capex will be done through internal accruals and not through debts, he further said.     

RailTel Wi-Fi on Railway Stations:  

RailTel is providing Wi-Fi network in over 5900 stations across India. It is one of the largest public Wi-Fi networks in the world. Only 400—500 stations are left. He said that the company wants to monetise this network, the revenue from which will be shared with the Indian Railways.